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purchase and assumption agreement whole bank all deposits - FDIC

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3. Modified loans sh<strong>all</strong> not include any prepayment penalties.<br />

4. The lender sh<strong>all</strong> establish an escrow account for the payment offuture taxes <strong>and</strong><br />

insurance premiums.<br />

Related Junior Lien Mortgage Loans<br />

In cases where the lender holds a junior lien mortgage loan that is collateralized by the same<br />

property that collateralizes a Qualifying Loan that is modified as described above, the junior lien<br />

mortgage loan sh<strong>all</strong> also be modified to enhance over<strong>all</strong> affordability to the borrower. At a<br />

minimum, the lender sh<strong>all</strong> reduce the interest rate on the junior lien mortgage loan to no more<br />

than 2% per annum. Further modifications may be made at the lender's discretion as needed to<br />

support affordability <strong>and</strong> performance ofthe modified first lien Qualifying Loan.<br />

Whole Bank P&A w/Loss Sharing Alliance Bank<br />

78<br />

February 6, 2009 Culver City, CA

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